CHAPTER 1 INTRODUCTION THE PROBLEM AND ITS SCOPE Rationale Zipkin (2000)‚ states that every one of us deals with dozens of inventories daily without thinking too hard about them. At home‚ we stock supplies of foods‚ drinks‚ soap‚ and many other items‚ because they make life easier than it would be otherwise. During times of calamities when there is no electricity and gas for cooking‚ one’s stock of canned goods and other ready to eat foods are of great help. Olivario (1998) said that
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(revenues) is called? Matching Principle 2. One of the following statements about the accrual basis of accounting is false. That statement is: Expense is recorded before the sales has been carried out. 3. In periods of rising prices‚ LIFO will produce following effect on net income: 1. Lower ending inventory and lower income 4. Rickety Company purchased 1‚000 widgets and has 200 widgets in its ending inventory at a cost of $91 each and a current replacement cost of $80 each
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increase their net income in 1984 by $3.2 million. A final accounting change that Harnischfeger made was their inventory method. They changed from using the FIFO method to LIFO in 1984. Once this change was made the inventories that were valued using LIFO way made up about 82% of total inventories. The inventory reductions led to a liquidation of LIFO inventory that were carried at a lower cost.
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Explain how the global factors in operations and inventory management can help a business sustain its competitive advantage In order for a business to sustain its competitive advantage‚ it must take into account the global factors influencing operations in association with its inventory management processes. A competitive advantage is defined as a condition or circumstance that puts a company in a favourable or superior business position. Both Crumpler and Coca-Cola have monitored these aspects of
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Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week 2. 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. • Based on the financial statements in 1984 Harnischfeger made changes from the previous year‚ the corporation computed depreciation expenses on plants‚ machinery and equipment using the straight-line method. Prior to
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$79.60 (20 units @ $3.98). (Weighted average cost = $438/110 units = $3.98) b) FIFO‚ $99.00 (19 units @ $5.00 + 1 unit @ $4.00). c) Only the FIFO method results in the same ending inventory valuation in both periodic and perpetual costing environments. Under the weighted average cost method‚ periodic and perpetual systems usually result in different valuations due to the timing of inventory purchases and sales. Under FIFO‚ the value assigned to ending inventory is the same using periodic or perpetual
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--- | Pg15 | Introduction In this assignment‚ all about the types of inventories that consists of raw materials‚ work-in-progress‚ and finish goods. Besides that‚ is the process of manufacturing the goods‚ valuation of inventory such as using FIFO or WAC and lastly is the amount of opening and closing inventories. In addition‚ Apollo Food Holdings Bhd. (APOLLO) was incorporated on 5th March 1994 as a private limited company under the name Apollo Food Holdings Bhd. It subsequently converted into
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PROCESS COSTING-SINGLE DEPARTMENT INTRODUCTION In process costing system‚ a large number of homogenous products passed through several production departments where each department is responsible for one or more operations that bring a product one step closer to completion. In each department‚ materials‚ labor and overhead inputs may be needed and upon completion of a particular process‚ the partially completed goods are transferred to another process. SIMILARITIES AND DIFFERENCES OF JOB ORDER
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loss in sales that causes them to use the machinery less often. With that being said‚ the machinery would last longer and will lose their value more slowly. In Note 7‚ Harnischfeger describes the effect of LIFO inventory liquidation on its reported profits in 1984. Describe what is meant by LIFO liquidation and how liquidation
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materials are added uniformly so that multiple calculations of equivalent units are needed for each type of input. True False 11. The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to that period. True False 12. FIFO follows the job-order costing principle. True False 13. The FIFO method unit costs are used to value output that is related to future periods. True False 14. The weighted average method treats
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